If Your Shopping Costs Exceed This Number, You're Outspending Most Gen Zers

Generation Z is known for being tech-savvy and prioritizing travel and experiences. With these defining traits, it can be natural to think of Gen Zers as high spenders. But a survey from Self, a credit-building platform, is shedding more light on the financial habits of individuals born between 1997 and 2012. The survey, which analyzed the spending of over 2,000 individuals, found that Gen Zers are splashing out an average of $193 per month, or $2,316 a year, on nonessential shopping. This category includes items such as clothes, cosmetics, and tech accessories.

In comparison, the average American spends $697 a month on nonessential items, according to Better Investing, meaning most adults outspend Gen Zers by a large margin. This divide is further apparent in overall spending, with Generation Z averaging $47,975 in expenditures each year. New data suggests Gen Zers are surprisingly frugal — though that may not be by choice, since many have deep-rooted money-phobia, making them feel financially crushed.

While Gen Zers are often portrayed as impulse buyers, their nonessential spending tells a different story. Rather than pouring their hard-earned money into discretionary items, Gen Zers are more interested in saving. According to Self's survey, 85.3% of respondents said they have money saved for emergencies. In comparison, less than 50% of all Americans have money set aside for a rainy day.

The low spending and high reliance on saving is a result of their odd money notions resulting from several financial crises and novel financial strain such as student debt, which affects 74.8% of Gen Z individuals. At the same time, a large percentage of Gen Zers also hold debt for regular household expenses, medical debt, and car repairs, according to Self. The stress to manage and pay back loans has led a staggering 56.3% of responders to feel worried about money on a weekly basis. It could also be the reason Gen Zers have developed skewed financial realities, such believing that an upper-class salary is above $75,000.Taken as a whole, Self's data shows how Gen Zers are adapting to current financial realities. And their low nonessential spending of $193 per month can be seen by some as a trade-off for their other priorities.